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Cellmid's Consumer Health Division Poised For Expansion

Cellmid (ASX:CDY) expects that its consumer health division will see the results of its rebranding and distribution expansion during the first half of the 2015 financial year.

The business performed to expectations during the June 2014 quarter despite the implementation of a number of initiatives including a price reduction in Australia and Japan, which have affected sales.

While sales values were lower at $296,380, compared to $390,936 in the third quarter, on a "per unit" bases sales have been steady or improved in most distribution channels.

It recorded sales of $1.1 million in 2014 - the first full year of operation for the combined entity following the acquisition and restructure of the Japanese business - in line with expectations

In Australia, the company's salon sales strategy, which started in March 2014, is beginning to show solid results.

This is expected to continue with a national roll-out finishing by the end of calendar 2014.

Cellmid also marked an increase in research and development cash outflows to $506,000 in the fourth quarter from $323,000 in the third quarter.

This underlies the solid progress in the anti-midkine antibody program.

It added this business would continue to account for the majority of the spending as the program is getting closer to clinical studies.

Recent Patent Grant

The company had earlier this month received official Notification of Grant from the United Kingdom Intellectual Property Office for its patent application for use of midkine to prevent and treat hair loss and to promote and enhance hair growth.

It also received direct confirmation from a peer-reviewed scientific paper that linked the FGF5 protein as a cornerstone regulator of human hair and eyelash growth.

In addition, it had last month selected Biotecnol SA subsidiary Rodon Biologics as the manufacturing partner for its humanised anti-midkine (MK) antibody CAB102 for clinical trials in multiple oncology indications.

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